World's biggest coal port loan price linked to social, emissions goals (updated)

China Merchants Port Holdings

04/05/2021 10:10

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    By Paulina Duran
    SYDNEY, May 4 (Reuters) - Australia's Port of Newcastle has
signed a A$515 million ($398 million) loan with National
Australia Bank (NAB) NAB.AX  that links interest payments to
non-mandatory social and environmental targets, the companies
said. 
    The world's largest coal port will pay less if certain
targets are met, including reducing its direct and indirect
greenhouse gas emissions and screening all customers for modern
slavery risks, they said in a joint statement.
    The loan also contains metrics focused on mental health
first aid, diversity and inclusion, they said. 
    The interest rate and potential discounts on it were not
disclosed. 
    "Behaviour-based lending provides an opportunity to help our
customers create greater environmental and social impact in
sectors not easily diversified," said David Gall, corporate &
institutional banking group executive at NAB.
    The new sustainability-linked loan is part of a broader
A$666 million refinancing facility funded by a consortium of
lenders, the statement said.
    The new financing comes after NAB rival Australia and New
Zealand Banking Group  ANZ.AX  in November declined to refinance
debt to the coal terminal, as it moves to achieve its own goal
of stopping all lending to thermal coal companies by 2030.
 urn:newsml:reuters.com:*:nL4N2HJ4K6
    Macquarie Group-backed  MQG.AX  The Infrastructure Group and
Hong Kong-listed China Merchants Port Holdings  0144.HK  own a
long-term lease to the Port of Newcastle.
    It exports coal around the world, including to China, India
and Mexico. 
    The port is trying to improve its environmental, social and
governance credentials and is striving to diversify its cargoes
to trade in wheat, fertilisers, cement and general cargo,
according to its website.  
    ($1 = 1.2928 Australian dollars)

 (Reporting by Paulina Duran in Sydney; editing by Jason Neely)
 ((paulina.duran@thomsonreuters.com; +61 2 9171 7406; Reuters
Messaging: paulina.duran.thomsonreuters.com@reuters.net))